Looking Forward: Your new normal, COVID-19 and lien periods/limitation periods
Unbelievable. If limited to one word to describe our current common experience, it would be “unbelievable”..
That said, we thought you should know that the Ontario Government is effectively passing a series of regulations (18 regulations appear to been passed on March 19 alone) including such items as extending the time periods for drivers license (O.Reg. 45/20) and on March 20, 2020, the following Regulation pursuant to the Ontario Emergency Management and Civil Protection Act:
Emergency Management and Civil Protection Act
ONTARIO REGULATION 73/20
ORDER UNDER SUBSECTION 7.1 (2) OF THE ACT
Consolidation Period: From March 20, 2020 to the e-Laws currency date.
No amendments.
This is the English version of a bilingual regulation.
Whereas an emergency has been declared pursuant to Order in Council 518/2020 (Ontario Regulation 50/20) on March 17, 2020 at 7:30 a.m. Toronto time pursuant to section 7.0.1 of the Emergency Management and Civil Protection Act (the “Act”);
And Whereas the criteria set out in subsection 7.1 (2) of the Act have been satisfied;
Now Therefore, an Order is made pursuant to subsection 7.1 (2) of the Act, the terms of which Order are the following:
1. Any provision of any statute, regulation, rule, by-law or order of the Government of Ontario establishing any limitation period shall be suspended for the duration of the emergency, and the suspension shall be retroactive to Monday, March 16, 2020.
2. Any provision of any statute, regulation, rule, by-law or order of the Government of Ontario establishing any period of time within which any step must be taken in any proceeding in Ontario, including any intended proceeding, shall, subject to the discretion of the court, tribunal or other decision-maker responsible for the proceeding, be suspended for the duration of the emergency, and the suspension shall be retroactive to Monday, March 16, 2020.
The duration of this Order is subject to any renewal required under subsection 7.1 (4) and, if applicable, subsection 7.1 (5) of the Act.
Given the foregoing, it is my view that any statutory time period requiring you, as a contractor, to take a certain step, including those for the registration of a claim for lien, is now extended retroactively from March 16, 2020 until the emergency is declared to be at an end.
Currently, we still have the continuing ability to register a claim for lien however issuing statements of claim to perfect those liens is becoming more difficult. With the above regulation, you will not be prejudiced if those steps cannot be taken.
This article was written by Dan Leduc (dan.leduc@nortonrosefulbright.com) with input from the Norton Rose Fulbright LLP Ottawa Construction Law team including, Mark Gallagher (mark.gallagher@nortonrosefulbright.com), Meghan Fougere (meghan.fougere@nortonrosefulbright.com), Erika Woolgar (erika.woolgar@nortonrosefulbright.com) and Crystal Li (crystal.li@nortonrosefulbright.com).
We are working through COVID-19 and available to help you and your company.